Caterpillar Inc.(CAT)NASDAQ
Fundamental Analysis & Financials
Valuation Snapshot
What the multiples imply about expectations
The market considers the company to be a large-cap player with a significant market presence. At current multiples, it trades at a premium—reflecting strong brand and market position, but leaving limited room for disappointment.
Valuation Metrics
Ratios and multiples
Financial Health
Liquidity and leverage
The company's financial health appears excellent. High ROE and strong ROA reflect highly efficient capital use. Note: ROE is materially amplified by leverage and share repurchases. Debt is elevated but represents structural leverage for shareholder return strategy (buybacks) rather than operational stress.
Valuation Multiples
Current valuation metrics
Quarterly Earnings History
Recent quarterly financial performance and trends
| Quarter | Revenue | Net Income | Gross Profit | EPS (Basic) | EPS (Diluted) | Gross Margin | Net Margin |
|---|---|---|---|---|---|---|---|
| Q1 2026(Latest) | $17.41B | $2.55B | $5.76B | $5.50 | $5.47 | 33.1% | 14.6% |
| Q4 2025 | $19.13B | $2.40B | $5.47B | $5.15 | $5.12 | 28.6% | 12.6% |
| Q3 2025 | $17.64B | $2.30B | $5.62B | $4.91 | $4.88 | 31.9% | 13.0% |
| Q2 2025 | $16.57B | $2.18B | $5.43B | $4.64 | $4.62 | 32.7% | 13.2% |
| Q1 2025 | $14.25B | $2.00B | $4.96B | $4.22 | $4.20 | 34.8% | 14.1% |
Key Insights:
- Revenue decreased by 9.0% from previous quarter
- Net margin of 14.6% indicates moderate profitability
- EPS improved by 6.8% quarter-over-quarter
Financial Efficiency
Utilization and collections performance
Asset Turnover 0.72 indicates moderate efficiency. Receivables Turnover 3.28 and DSO 111.27 reflect poor collections. Working Capital Turnover 4.44 is moderately efficient. ROIC 14.6% highlights moderate capital returns.
Efficiency Metrics
Profitability & Growth
Margins and earnings power
Efficiency Performance Matrix
4-quadrant analysis of operational efficiency vs profitability
Efficiency vs Profitability Quadrants
High Margin
Low Margin
High Margin
Low Margin
Efficiency Analysis
Asset Turnover
Receivables Turnover
Working Capital
Overall Efficiency Score
Profit-focused operations with efficiency opportunities
⚠️ Thresholds are benchmark-based heuristics derived from long-term industry averages, not strict valuation rules.
• Bubble size represents ROIC magnitude
• Green (Optimal): Excellent efficiency-profitability balance
• Blue (Efficiency-Driven): High turnover, room to improve margins
• Yellow (Margin-Driven): Strong margins, opportunity to improve efficiency
• Red (Weak Operations): Areas needing improvement on both dimensions
Market Data & Share Structure
Comprehensive valuation metrics and ownership breakdown
Market Data & Capitalization
Share Statistics & Ownership
Profitability Margin Pyramid
Hierarchical view of margin compression from revenue to net income
Margin Hierarchy by Profitability Level
Margin Analysis
Total Revenue
Gross Profit
EBITDA
Net Income
Margin Quality Assessment
Good margin profile with healthy profit retention
• Larger circles represent higher dollar amounts
• Margin percentages show profitability at each level
• Blue: Revenue base
• Green: Gross profitability
• Yellow: Operating performance
• Red: Net profitability
Operating Cash & Liquidity
Core cash generation and short-term solvency
Cash Flow Analysis
Operating Cash Flow (TTM)
$12.32B
Cash from core operations
Free Cash Flow (TTM)
$3.78B
Available after capex
Financial Position & Liquidity
Current Ratio
1.35
Adequate
Quick Ratio
0.73
Fair
Net Cash
$-39.75B
Net debtor
Total Cash
$3.32B
Balance sheet cash
Total Debt
$43.07B
Outstanding borrowings
Ownership & Shareholder Sentiment
Insider, institutional, and short interest positions
Insider Ownership
21.60%
Strong confidence
Institutional Ownership
72.84%
Majority backing
Short % of Float
205.00%
Heavy bearish
Short Ratio (Days)
3.0d
days to cover
Ownership structure shows strong insider confidence and institutional majority backing.
Dividends & Shareholder Returns
Policy stance and implications
The company maintains a sustainable dividend policy with a payout ratio of 29.6% (FCF coverage: 1.4x). Cash flow provides adequate dividend support with room for continued payments.